Bitcoin is almost 3% higher on Tuesday at $18,900 and the price should see a test of the all-time high this week. The move higher is coming as the new PayPal cryptocurrency service gathers pace.
A stunning piece of research from analyst Jesse Felder showed that PayPal usage was already soaking up a large percentage of new coin supply in Bitcoin. Felder said on Twitter:
“When PayPal went live, volume started exploding. The increase in itBit volume implies that within four weeks of going live, PayPal is already buying almost 70% of the new supply of Bitcoins.”
The research suggests that the payments platform could have a long-term impact on supply and demand, while the company also doubled the maximum purchase amount within the first week or two.
The PayPal situation is also important because other payment processors could follow their lead and also allow the use of BTC and other cryptos as a form of payment. Traders are fixated on the price of Bitcoin over the last years but the game is seriously changing with institutional demand growing and now a huge payments company being a first-mover into the space.
Bitcoin Technical Outlook
Bitcoin pulled back from the first move at $19k but found support and is now looking for a strong close. The all-time highs at $20,000 should be hit this week and traders should watch the price at that level to gauge the path ahead. The Investing Cube team is currently available to help all levels of traders with the Forex Trading Course or one-to-one coaching.
Bitcoin Daily Chart
